11:06 AM EDT, 07/25/2024 (MT Newswires) -- Honda Motor ( HMC ) will shut down one factory in China and pause production at another plant amid tough competition in the Chinese auto market, Reuters reported Thursday, citing a company spokesperson.

A plant operated through Honda's ( HMC ) joint venture with Chinese state-owned automaker Guangzhou Automobile Group, where the Accord sedan model is being manufactured, will be closed in October, the report said.

Production at another factory operated through a joint venture with Dongfeng will be paused from November, the report said.

As a result, Honda's ( HMC ) annual production capacity in China will shrink to 1.2 million vehicles from 1.49 million, though it will recover to 1.44 million vehicles with the output from two electric vehicle plants currently under construction through its joint ventures with the two Chinese companies, the report said.

Honda ( HMC ) did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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